Governor Ahmad Luthfi's Measures to Strengthen Labour Welfare in Central Java

Central Java Governor Ahmad Luthfi has announced a range of programmes and policies designed to strengthen the protection and welfare of workers in the province. These measures include the establishment of a task force to prevent layoffs (PHK), an increase in the minimum wage, and the provision of various supporting facilities for workers. Luthfi made the announcement while receiving the President’s Special Adviser on Labour and Worker Welfare, Said Iqbal, at his office on Monday (27/7).

One of the highlighted policies is the formation of a PHK Task Force. This unit works preventively when a company begins to show signs of trouble. The task force is responsible for ensuring workers’ rights are fulfilled if layoffs become unavoidable, including severance pay, old-age security, lost job insurance, overtime pay, and leave compensation.

Regarding non-wage welfare, Luthfi has reduced the Trans Jateng bus fare for workers from Rp2,000 to Rp1,000 per trip. The Central Java Provincial Government is also promoting the provision of free daycare and Women Workers’ Protection Houses in industrial areas. Furthermore, the provincial government has established the ‘Central Java Prosperous Workers Cooperative’ to supply basic necessities at more affordable prices. The first cooperative was set up in the Wijayakusuma Industrial Area in Semarang, which employs around 29,000 workers.

This pro-worker stance is also reflected in wage policy. Ahmad Luthfi set the 2026 Central Java Provincial Minimum Wage (UMP) at Rp2,327,386.07, a 7.28 per cent increase from the previous year. The calculation used an alpha coefficient of 0.90, the highest limit permitted by regulations.

During the meeting, Said Iqbal conveyed the President’s message that the government must intervene immediately when layoff issues arise. The government is asked to investigate the causes and seek solutions that still protect workers. “If layoffs occur, quickly go down to the ground. That is the President’s order. So ensure you dig into what the cause is, what the problem is, and what the government can help with,” said Said Iqbal. He noted that siding with the vulnerable is a principle emphasised by the President in handling labour issues. “The President’s language is this: we must protect the weak, not protect the strong,” he said.

On that occasion, Said Iqbal specifically highlighted the layoff issue of workers at PT Victory Apparel Semarang. He encouraged a resolution through dialogue between the government, the company, and the workers. Meanwhile, Ahmad Luthfi explained that the problems at PT Victory Apparel are inseparable from the company’s history, which was affected by the Covid-19 pandemic, flooding, reduced orders, and financial pressure. “After looking at its history, it seems it was mainly due to Covid, flash floods, and the company’s financial condition,” said Luthfi. This preventive approach to labour issues was also applied by Luthfi during his previous tenure as the Central Java Police Chief. He said that handling at that time prioritised persuasive measures before disputes escalated into legal cases.